Natural Gas and Lentils Drive Canadian Exports to Record

  • Natural Gas and Lentils Drive Canadian Exports to Record

Natural Gas and Lentils Drive Canadian Exports to Record

Canada has significantly reduced its trade deficit in March to $ 135 million through record exports, the statistical institute said on Thursday.

Economists had expected a deficit of $800 million, according to Thomson Reuters. Exports of goods and services declined 0.9 percent on the month, to $191.0 billion, or $1.7 billion lower than February, while imports of goods and services declined 0.7 percent, also by $1.7 billion, to $234.7 billion.

The trade deficit with Mexico widened 22 percent to $7 billion, the highest since November 2007, as imports rose to a record $28.1 billion.

Imports grew 1.7 per cent to $47.11-billion on higher inward flows of metal and non-metallic mineral products, particularly unwrought gold from Japan.

Imports increased $47.5 billion or 7.1%. Exports of food and beverages increased slightly, up $0.18 billion after falling $0.81 billion in February.

Japan was the second largest source of the overall USA goods trade deficit following China.

A shrinking trade deficit adds to economic growth.

The Trump administration has made slashing the trade deficit one of its priorities, particularly the large gaps with China and Mexico.

But the statement said the trade balance with China "improved by 2.5 percent" on a year-to-date basis even though China remained the United States' biggest source of trade deficit. As a result, Canada's trade surplus with the United States slipped to $3.97-billion from $4.51-billion in February.

While exports of industrial supplies and materials and passenger cars saw substantial decreases, exports of civilian aircraft engines and telecom equipment increased. But he reneged on a promise to call out China for manipulating its currency to give its exporters a price advantage, saying that China is cooperating in dealing with a belligerent North Korea.